.Given the choice between two investment properties: 3-bedroom, 2-bath, 1,700 square foot single-family residences listed at $125,500, one key in hand in Stockton, California, and the other, a renovation in Chapel Hill, North Carolina - and with the sole aim of getting the maximum profit from my investment, I would choose to purchase the Chapel Hill house. Because I believe this property's listing price is lower than its true value, and because I expect a growing real estate market to increase the home's value by 10 percent over the next two years. In the next few years, I think with an additional investment of $50,000 in renovations and a two-year buy-and-hold rental strategy, I could flip the Chapel Hill house for over $180,000 in profit. As is, the Chapel Hill home is worth well over $125,500. In October 2013 (the most recent month for which data is available), a mid-range 3-bedroom home on the market in Chapel Hill was listed at $154 per square foot and sold for $150 per square foot. according to real estate market data aggregated and reported by Zillow. For a 1,700 square foot home like the one offered here, these figures equate to a current median listing price of $261,800 and a current median sales price of $255,000. Other estimates of prices per square foot for 3-bedroom homes in Chapel Hill, such as those provided by Trulia, are only higher. Even giving a generous 30% discount off Zillow's median list price for the cosmetic updates needed for this property, $125,500 is still $53,000 less than the property's true market value. The data suggests that if I were to simply buy the house and relist it the next day at its true value, I could expect to sell it - without waiting...... middle of paper ...... y 2011 prices, and after extensive renovations to the property – I believe I could easily sell the Chapel Hill home for $338,640, the projected median sales price of $282,200 ($166 per square foot for a 1,700 square foot home) increased by 20. percent for the turnkey condition of the property. Minus the purchase price and the cost of renovations of $50,000, plus the rental income of $17,419.65, the total profit would be $180,559.65, an exceptional return of 143.9% on my investment initial. And that's assuming that Zillow's price data – the lowest I've found – is the most accurate, and assuming that the housing market simply returns to 2011 prices rather than surpassing them, and assuming that the rental rate I can charge for newly renovated real estate in 2014-2015 is still at the same level as the 2010 market average; the true return on my initial investment could be even higher.